NZ stocks: Market continues postive trend through morning

12.40pm

The New Zealand sharemarket traded on a positive note in morning trading with both major indices showing growth.

At 11.30am, the benchmark NZSX-50 index was up 9.24 points at 2290.79, while the NZSX-40 capital index was up 9.47 points at 2191.60.

Market heavyweight Telecom was up 7c at 504, having traded $35 million worth shares on volume of seven million.

So far this morning, there had been $56.4 million worth of shares traded on volume of 36 million.

Among the 117 stocks traded were 33 rises and 26 falls.

Auckland-based vodka and gin maker 42 Below made its debut on the sharemarket today, and at 11.30am its shares were trading at 42c.

The company's shares had an initial public offer price of 50c each.

Forsyth Barr broker David Price said the jury was still out on 42 Below.

"I think a lot of people went in to it (42 Below shares) thinking it would be a stag and obviously that hasn't been the case," Mr Price told NZPA.

"It's a good company but may have been ambitiously priced."

Air New Zealand shares were up 1c at 52 after the company last night said it would slash 1500 jobs from its 10,000-strong workforce over the next four years.

The move is an attempt by the airline to save $245 million a year.

Mr Price said a lack of financial details surrounding the proposed savings plan meant the market had not yet reacted to the news, which was likely to happen in coming sessions.

Turners Auctions shares were up 8c at 438 ahead of its annual meeting today.

Other shares on the rise included: Allied Farmer up 4c at 210, Auckland International Airport up 4c at 640, Contact Energy up 2c at 495, Fisher & Paykel Appliances up 5c at 1475, Hirequip up 3c at 95, Sky TV up 5c at 490, and Utilico up 5c at 70.

Among those on the slide were: AMP down 22c at 790, Briscoe down 2c at 190, Guinness Peat Group 1c at 170, Hellaby down 5c at 500, NZX down 3c at 445, Telstra down 6c at 557, and The Warehouse down 2c at 565.

Overseas, the Nasdaq Composite Index rose 9.66 points to 1943.19, its highest close since January 2002.

The Dow Jones industrials advanced 48.60 points to 9812.98, its highest close since May 31, 2002.

The broad Standard & Poor's 500 was up 4.13 points at 1049.48, ending at its best level since June 5, 2002.

- NZPA